The report was issued by the Institute for Policy Studies in response to an investigation that takes place at various Top Corporations in the United States revealed that some of these companies its top directors earn more than many corporate taxes! The survey, which took place in mid-2011 was aimed at checking how the directors got in comparison with other expenses of these corporations. From these surveys, various questions concerning the operation of the leading companies in the United States.
The difference between the income the CEO and other employees from receiving
Report on the survey showed that many of these directors earned more than other employees in the organization. According to the report, the compensation of directors of these companies outmatched that regular U.S. income working in the 325-to-1, this ratio was significantly higher in comparison with 2009 the number of 263-to-1.
Cases of tax evasion
According to reports, many of these leading corporations use all possible loopholes in the tax code to pay as little tax as possible. Companies use such spaces are accelerated depreciation to reduce the amount of taxes to be paid.
Offshore Income
According to the report, many international companies that were part of a survey held a large portion of their profits to foreign accounts to avoid paying any taxes. This, they say, denied that the government taxes, if not paid.
The tax code allows a company with international subsidiaries to their foreign profits tax-free accounts. Corporate taxes on profits abroad, these companies are only applied once the repatriation of funds into the country.
Congress Called to action
In its report, the recommendations of the Institute suggested that Congress work to seal various spaces available in the tax laws that allow these companies to avoid paying taxes. They also suggested that the shareholders of these companies, most of which the public will have a greater say in decision-making businesses. By the constitution felt it would be monitoring these companies and CEOs would pay her exaggerated.
Critics of the report
However, based on recommendations by the constitution, critics have downplayed the comparison between income CEOs and legal persons and compensation to other workers. Many argue that if the company remains profitable to the extent that shareholders are happy, then the CEO is entitled to his hefty paycheck. They argue that some of the companies in the survey actually beat the market and shareholders do not care that Uncle Sam was denied money - if their share price is rising. They also argued that the incentives in the tax code there be an advantage and if the company optimized the opportunities in the tax code legally avoid paying taxes, excessive, then the company and directors should not be punished or displayed in a bad light.
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